Exam (elaborations)
Wisconsin Real Estate License Exam
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Wisconsin Real Estate License Exam
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Wisconsin Real Estate License ExamAgency - -the foundation upon which real estate brokerage is practiced. It
describes a legal and ethical relationship between a real estate firm and a
party to a transaction.
-Licensee - -Any person licensed under state law to practice real estate.
-Broker - -A person that, for another person, and for commission, money or
other thing of value, negotiates or offers or attempts to negotiate, whether
directly or indirectly.
-A party is negotiating when: - -1) Acting as an intermediary by facilitating
between a parties transaction.
2) Completing appropriate forms and writing documents
3) Presenting party proposals of other parties and explaining provisions.
-Exchange - -tax-planing tool for property owner to exchange one property
for another and defer payment of the tax on income earned on the transfer.
The tax is differed not tax free (starker).
-Option to Purchase - -An agreement to keep open, for a set period, an offer
to sell or lease real property. (layaway) Buyer pays an option fee for the right
to purchase by agreed terms. Unilateral sale...buyer doesn't have to buy buy
seller has to sell.
-Business Sale - -Any type of business that is for sale including the goodwill
of an existing business and all the assets, with or without real estate.
-Who doesn't need a license? - -1) Persons appointed under the order of the
court
2) Public officers
3) Manager of residential building who shows a residential unit to prospective
tenants
4) Attorneys
-Firm - -Any licensed individual broker acting as a sole proprietor or a
licensed broker business entity
-Salesperson - -Any person associated with a firm, other than a broker or
individual who is not required to hold a license. Must be associated with firm
and if it loses its license must stop practicing immediately.
-Agent - -Acts on behalf of a principal, such as a buyer or seller, and carries
out the directions of the principal.
, -Client - -A party represented by a broker in an agency relationship in which
the agent represents their interests
-Principal Firm - -A firm that engages a subagent to provide brokerage
services in a transaction. Many times its the listing firm.
-Subagent - -Firm that is engaged by a principal firm to provide brokerage
services in a transaction, but is not associated with the principal firm.
-Customer - -Party to a transaction who receives brokerage services, such
as drafting an offer to purchase from a firm but who is not the firm's client.
Doesn't enter into agency agreement.
-Agency Models - -There are three different options that a client chooses
that with structure the relationship with the firm.
-Single Agency - -When a firm represents either the buyer or the seller as a
client, but never both in the same transaction.
-Multiple Representation - -Firm represents two or more clients in the same
transactions. When buyer and seller are both clients of the same firm and
participation in the same transaction. Both parties must consent. Client can
withdraw at any time (in writing).
-Multiple Representation without designated Agency - -Firm provides
services as agreed to in the clients' agency agreements, but the firm must
take a neutral position in the transaction negotiations. Agent cannot place
the interest of one client ahead of another.
-Multiple Representation with Designated Agency - -The firm represents
multiple parties in the transaction. Firm designates an agent to each client
and the designated agent does not have to remain neutral in the transaction.
-Fiduciary - -Person who is responsible for the property of another
-Cooperating Firm - -Firms the cooperate with the listing firm in one
transaction. Can either be the seller's firm or the cooperating firm.
-Listing FIrm - -Firm that the seller hires with the listing contract. The seller
is their client whom they represent.
-Listing Agent/Licensee - -Agent associated with firm who secures and
executes the listing contract.
, -Selling Firm - -Firm that finds the buyer and writes the offer. Subagent of
the listing firm.
-Selling Agent/Licensee - -Finds the buyer and writes offer.
-Buyers Firm - -Firm the signs a buyer agency agreement with a buyer.
Buyer is a client.
-Buyer's Agent/Licensee - -Associated with the buyer's firm who drafts the
offer for the buyer-client.
-Duties for Subagents - -Firm engaged by a principal firm to provide
brokerage services in a transaction, but that is not associated with the
principal firm. Owes all duties owed to all persons as well as the duty of
loyalty to the seller.
-Customer Agency Disclosure Obligations - -To customers, cannot negotiate
on behalf unless the licensee provides them with state-mandated disclosure
statements. Can disclose plain-language summary.
-Client Agency Disclosure Obligations - -To clients, must provide the state
written disclosure statements no later that the time the firm enters into an
agency.
-Providing Agency Disclosure - -Must provide in all transactions to either
clients or customers depending on each situation.
-Disclosure Obligations by Buyer's Firm - -Firm that represents the buyer
who is working directly with the the seller, must notify the seller during first
contact, a showing of the property, or any other negotiations with the seller.
-Disclosure of Compensation and Interests - -Licensees do not need to
disclose referral fees for real estate services between licensees
-Broker practicing with others - -Broker can practice with other firm with
written consent and working with firm that is non competing
-Notifying the Department of Safety and Professional Services - -Must notify
them if there are any changes to their practice or changes affecting their
license.
-Licensee termination - -Must notify DSPS in writing within 10 days
-Licensee conviction - -Must send to Real Estate Examining Board within 48
hours
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